In a surprising move, Fiat has announced the return of a gas-powered version of its iconic 500 model. This decision comes after the new 500e, initially designed as an electric-only vehicle, failed to meet sales expectations. The **Fiat 500 EV flop** has prompted the automaker to reconsider its strategy and reintroduce a combustion engine to the lineup. Full-scale production of the new **Fiat 500 Hybrid** is slated to begin in November, with Fiat aiming for at least 100,000 annual sales.
The Fiat 500 has long been a familiar sight across Europe. However, the new electric model has struggled to gain traction, primarily due to its high price point. Priced around $37,610 (€33,900), the 500e is more than twice as expensive as the previous combustion engine model, which was in production from 2008 until recently. This price difference proved to be a significant barrier for many consumers, mirroring the challenges faced by other electric vehicles like the Honda e.
While Fiat has been tight-lipped about the specifics, the new **gas-powered Fiat 500** appears to retain much of the design of its electric counterpart. Teaser images reveal a six-speed stick shift, suggesting a manual transmission option. The instrument cluster will likely be updated, and the addition of a third pedal is expected. The most notable exterior change is the redesigned grille, necessary to allow airflow to the engine.
It is widely speculated that the “Hybrid” designation refers to a mild-hybrid system rather than a full hybrid. This could involve carrying over the 1-liter three-cylinder engine from the previous model, which already incorporated mild-hybrid technology and produced around 70 horsepower. However, given that the new 500 is slightly larger and heavier, this engine might feel underpowered. The return of a combustion engine opens the door to potential future Abarth models, though Fiat currently offers Abarth versions exclusively as EVs.
The decision to reintroduce a combustion engine in the Fiat 500 reflects a broader trend among automakers reassessing their electrification strategies. The high cost of EVs, combined with infrastructure limitations and consumer hesitancy, has led some manufacturers to backtrack on ambitious electrification goals. Even the European Union has granted carmakers more time to comply with stricter emissions regulations.
Offering an automatic transmission option alongside the manual could significantly boost **Fiat 500 sales**. However, the return of the dreaded automated manual transmission from the old model would likely be a disappointment. Ultimately, Fiat’s success with the new 500 Hybrid will depend on its ability to offer a compelling combination of affordability, practicality, and style, appealing to a wider range of buyers than the electric-only model could reach.
